TPI Composites files for Chapter 11 bankruptcy, plans delisting from Nasdaq
BALTIMORE, MD – T. Rowe Price Group Inc. (NASDAQ:TROW) Vice President Andrew Justin Mackenzie has sold a significant portion of his holdings in the company. On September 6, 2024, Mackenzie sold 11,969 shares of common stock at prices ranging from $102.36 to $103.14, totaling approximately $1.23 million.
The sale came on the same day Mackenzie exercised options to acquire the same number of shares at a price of $77.2445, amounting to a transaction total of roughly $924,539. The stock options were originally granted on September 9, 2014, with a vesting schedule of 20% annually over five years, beginning December 10, 2015.
Following the transactions, Mackenzie's holdings in T. Rowe Price common stock have decreased to 123,624 shares. The company, known for its financial management services, has not made any official statement regarding the transactions.
Investors often monitor insider trading activity, such as purchases and sales of company stock by executives, for insights into management's perspective on the firm's prospects. The transactions are disclosed through mandatory filings with the Securities and Exchange Commission.
T. Rowe Price Group Inc. is headquartered at 100 East Pratt Street, Baltimore, Maryland, and operates within the financial services industry. The company's stock is publicly traded on the NASDAQ exchange under the ticker symbol TROW.
In other recent news, T. Rowe Price has reported an adjusted EBITDA of $161 million for the second quarter of 2024, slightly below the Bloomberg consensus but within the company's guidance range. The Titanium Dioxide segment saw a 16% year-over-year increase in volume, and the Zircon segment experienced a 4% volume increase. However, the company is facing challenges due to ongoing elevated costs at the pigment plant and weaker-than-expected end-market demand.
Goldman Sachs has upgraded the price target for T. Rowe Price to $21.00 from the previous $18.00, reiterating a Buy rating. Meanwhile, Barclays initiated coverage on the company's shares with an Underweight rating and a price target of $99.00, and TD Cowen maintained a Hold rating but reduced the 12-month price target from $123 to $118.
Despite facing growth challenges, T. Rowe Price reported significant growth in its Exchange-Traded Funds (ETF) business, with assets under management reaching $1.57 trillion. The ETF business grew to $5.3 billion, a considerable increase from $1.2 billion in the previous year. These recent developments indicate a complex path towards achieving net inflows by 2025, as highlighted by TD Cowen.
InvestingPro Insights
In light of the recent insider trading activity at T. Rowe Price Group Inc. (NASDAQ:TROW), where Vice President Andrew Justin Mackenzie sold a notable number of shares, investors might be interested in some key financial metrics and insights from InvestingPro. As of the latest data, T. Rowe Price boasts a strong market capitalization of $22.99 billion. The company's price-to-earnings (P/E) ratio stands at 12.17, indicating that the stock is trading at a low P/E ratio relative to near-term earnings growth—an InvestingPro Tip that suggests the company's earnings potential may not be fully reflected in its current share price.
Adding to the company's financial robustness is a PEG (Price/Earnings to Growth) Ratio of 0.45, which implies that the stock could be undervalued based on its earnings growth projections. Furthermore, T. Rowe Price's revenue growth over the last twelve months as of Q2 2024 is a solid 8.56%, with a gross profit margin of 50.69%, highlighting the company's ability to maintain profitability and efficiency.
Another InvestingPro Tip points out that T. Rowe Price has a perfect Piotroski Score of 9, which is a strong indicator of the company's financial stability and potentially bullish future performance. Moreover, the firm has consistently rewarded shareholders, maintaining dividend payments for 39 consecutive years, with a current dividend yield of 4.88%, reflecting a commitment to returning value to investors.
For those interested in further analysis and additional InvestingPro Tips on T. Rowe Price Group Inc., there are currently 7 more tips available, providing deeper insights into the company's performance and stock valuation. These can be accessed through the dedicated InvestingPro page for T. Rowe Price at https://www.investing.com/pro/TROW.
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